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1 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Conversion of Great Lakes Bulk Vessels to LNG:
Evaluation of a Potential Fuel Terminal Hiroko Tada
Transportation and Logistics Management Major University of Wisconsin-Superior
Prepared for the Connecticut Maritime Association
January 2013
I would like to express the utmost gratitude to Lead Operator, Mr. Rodney Graham from Calumet
Superior, LLC., Duluth Marine Terminal, Great Lakes Maritime Research Institute for the help and
support of this report. I am also grateful to my teacher, Dr. Richard Stewart, who assisted me in
completing it.
Most marine fuels are residual fuels, which is the low-grade oil product that remains after the
distillation of crude oil. After the petroleum crisis in 1973, the quality of residual oil declined. Companies
had improved their refining technologies to exact the maximum quantity of refined products (Buckley
189). As a result, the consistency of contaminants such as sulfur, the substance that causes negative health
effects and environmental threats, has increased. To improve on air quality and protect public health from
the toxic emission, the United States and Canada submitted a joint proposal to the International Maritime
Organization to designate an Emission Control Area (ECA), a certain area of United States and Canadian
coastal waters including the Great Lakes. (EPA 1-1). The ships sailing within the ECAs have to reduce
their emission of sulfur oxide (SO), nitrogen oxide (NOx), and fine particulate matter (PM2.5) (EPA 1).
To meet the ECA standard, the ships either have to (1) install scrubbers, (2) use low sulfur content fuel,
(3) a combination of (1) and (2), or (4) use a clean fuel, such as natural gas.
Our research team is composed of Hiroko Tada, the principle investigator, Julia Haeder, who
contributed to the writing survey letter, and Dr. Stewart as an advisor. The Great Lakes Maritime
Research Institute (GLMRI) has been funded by the U.S. Maritime Administration to explore the
potential of shifting suitable Great Lake ships to using natural gas as a fuel in preparation for the vessels
need to meet the requirements of the North American Emission Control Area (ECA). Initial GLMRI
research indicates that Liquified Natural Gas would most likely be the type of natural gas fuel used by
Great Lakes vessels. In order to use LNG as a vessels’ fuel, it is essential to develop a supply chain for
LNG in the Great Lakes region. Without a stable availability of LNG, it is difficult for shipowners to
convert to LNG. GLMRI has cataloged the current fueling locations used by Great Lakes vessels and, as
part of the research process, is evaluating the potential to modify the existing fuel terminals to provide
LNG.
2 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Duluth, Minnesota and Superior, Wisconsin (the Twin Ports) is the largest port on the Great
Lakes and in the top twenty of the United States. Over 1,200 vessels a year call at the port, and it has
been a fuel stop for over one hundred years. Initial GLMRI research has indicated that there are sufficient
natural gas supply lines coming to the region to supply a gas liquefaction plant. Within 250 miles of the
port there are multiple markets for LNG including trucking, rail, mining, transit, and agriculture as well as
shipping. It is important for suppliers know there is enough demand to justify building a natural gas
liquefaction plant.
Our research team was tasked with identifying the current fuel consumption for ships fueling in
the Twin Ports and to examine the existing fueling terminal. The data gathered will assist in determining
fueling options and what size liquefaction plants would be appropriate for this region. This paper is the
report on the research conducted to determine marine fuel consumption and the potential to use the
current terminal for LNG.
Survey Methodology
Research from Greenwood’s Guide to Great Lakes Shipping 2009 and Duluth Seaway Port
Authority: Ms. Adele Yorde indicated that the two companies, Liquid Transport Inc. and Calumet
Superior, LLC., Duluth Marine Terminal (Calumet), are the major fuel suppliers in the Duluth / Superior
area, (Greenwood’s. 19.5). To obtain fuel consumption data, a survey was sent to each company.
In order to send a survey form and letter, we investigated quantitative research methodology to
learn how to compose a concise survey form. It is critical to prepare detailed questions in order to gain
information without confusion from respondents. Our survey draft was reviewed by Dr. Stewart. After
discussion with him, and research into the types of fuel used by ship, it was revised to be more precise.
At first we decided to send the surveys by email. As our survey form was made using Excel, we
thought it was not convenient for respondents to fill out a survey form by hand. However, Dr. Stewart
gave us advice that sending our letters by snail mail will catch the respondent’s attention better than
email. We installed our Excel survey form (see Appendix I Survey Instrument) into a Great Lake
Maritime Research Institute flash drive and sent it with a cover letter by snail mail. On December 5, 2012,
we sent survey letters (See Appendix I) to Liquid Transport, Inc., 101 Hwy. 61E. Esko, MN 55377, and
Calumet, 1400 Port Terminal Dr. P.O. Box 16171, Duluth, MN.
We received responses from Calumet, but did not receive any reply from Liquid Transport, Inc.
On December 7, 2012, I received a phone call from from Calumet, saying that they were willing to give
us a facility tour. I scheduled the facility tour for the research team and Dr. Stewart on December 18,
2012 at approximately at 13:30 at Calumet Superior, LLC., Duluth Marine Terminal.
3 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
With the advice of Dr. Stewart, I prepared beforehand a list of questions to ask at the tour. Dr.
Stewart also gave me advice to compose questions. (See Appendix II). Calumet did not fill out the survey
form which was sent with the letter, but in return was willing to give us a facility tour, along with a
discussion.
M/V Paul R. Tregurtha
While on the tour the research team had an opportunity to observe the bunkering operation for
M/V Paul R. Tregurtha at the Calumet facility tour. The following is a description of a Great Lakes bulk
carrier.
M/V Paul R. Tregurtha is a Great Lakes-based bulk carrier and the largest vessel on the Great
Lakes. She is 1,013 feet (309m) lengthwise with a beam of 105 feet (32m); her carrying capacity of
Taconite pellets is up to 68,000 gross tons. She was built in 1981 by American Ships Building Company
yard in Lorain, Ohio, first named M/V William J. Delancey. In 1990, her name was changed to M/V Paul
R. Tregurtha in honor of Interlake Steam Company’s Vice Chairman of the Board (The Interlake Steam
Company).
M/V Paul R. Tregurtha is equipped with main engines made by a German company,
Maschinenbau Kiel GmbH (Mak). According to the Interlake Steam Company, the engine horsepower is
17,120 bhp. This is the third season that the ship has operated with the MaK engines. The vessel was re-
powered in the winter of 2009 to 2010 during winter lay-up. In a conversation with the research team, the
vessel’s Chief Engineer, Mr. Rick Laksonen, said that the ship burns 9,700 U.S. gallons (36,718.49 liters)
of IFO a day on average when they are underway. He also mentioned that in the winter the ship loads fuel
in Duluth every trip in case the vessel would not be able to stop at a fueling dock because of ice. In the
summer they load fuel less frequently.
Due to its length and beam, the M/V Paul R. Tregurtha cannot sail into Lake Ontario. According
to the St. Lawrence Seaway Management Corporation “The Welland Canal Section of the St. Lawrence
Seaway”, vessels more than 225.5m (740 feet) long, or 23.8m (78feet) wide cannot travel through the
Seaway locks (11). The St. Lawrence Seaway Management Corporation mentions in their “The Welland
Canal Section of the St. Lawrence Seaway”, that there are eight locks between Lake Erie and Lake
Ontario (See Figure 1). This means that the M/V Paul R. Tregurtha cannot leave the Great Lakes.
4 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Figure 1: Welland Canal Profile
Source: The St. Lawrence Seaway Management Corporation, Corporation “The Welland Canal Section of
the St. Lawrence Seaway” (2003 7)
Observing Bunkering Operations at Calumet Fuel Terminal Duluth, MN
The detailed facility schedule on December 18, 2012 :
• 13:00 - Left University of Wisconsin-Superior.
• 13:20 - Arrived at the Calumet Superior, LLC., Duluth Marine Terminal
Observe arrival docking of the vessel: M/V Paul R. Tregurtha
Pass security and sign in
The research team was given a safety briefing and put on safety equipment
Observed the following:
Red Bravo flag (B-flag) was up.
B-flag is a red colored flag from one of the International Marine Signal Flags,
and it means a ship is engaged in loading or discharging hazardous material.
The B-flag image from International Code of Signals
The ship and the shore communication were established
The hoses were connected to the ship’s manifold. Two hoses were hoisted using a shore
crane with saddles to support the hoses and prevent them from twisting or kinking. The
hoses went from the terminal’s piping system to the ship’s fuel manifold. A six inch
diameter hose was used for diesel fuel and an eight inch hose for Intermediate Fuel Oil
(IFO).
5 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
• 13:30 – Bunkering started
When the bunkering started we had to move to the general area for safety issues.
Mr. Graham ensured all valves were correct, and after approval from the vessel, he then
started supplying diesel oil slowly. When he made certain that all was in good order with
the diesel he then set up and started providing IFO-280 (#6 oil).
During the bunkering operation, Mr. Graham was constantly checking for any leak, and
that proper back pressure was maintained.
Calumet supplied blended diesel fuel, Number 2 Diesel Oil (#2 oil) for 6,000 U.S. gallons
(22,712.47 liters) and 55,000 U.S. gallons (20,8197.65 liters) #6 oil to M/V Paul R.
Tregurtha.
During the operation, Mr. Graham took the samples of diesel oil and #6 oil. Sampling is
conducted to confirm the fuel specifications are correct for the vessel. If the fuel is the
wrong kind, it might cause problems such as fire while the sailing due to overheating the
engine. Excessive expansion due to heating might also cause spillage. The sample
container “sealed carefully labeled with the name of the ship, the name of the supplier,
date of delivery, exact time of day, and the number of the container’s seal” (Buckeley
190). Mr. Graham took #6 oil samples for the ship and for Calumet, and one #2 oil
sample for the ship. He mentioned that Calumet would not keep a #2 fuel sample,
because they only have one #2 tank at their facility.
U. S. Coast Guard (USCG) arrived for an inspection of the fueling operations.
The USCG talked both ship’s chief engineer, Mr. Rick Laksonen and Calumet manager,
Mr. Graham, then went on the ship for an inspection.
There were two people from the ship monitoring the fuel transfer operation; one ship
crew member staying by the manifold, and the other ship crew member, which was the
chief engineer, on the dock.
• 14:00 – Finished bunkering #2 oil to the ship
The #2 Diesel oil valve was shut down, then air was blown into the hoses to force the
remaining diesel in the hose into the ship’s tank.
It took approximately 30 minutes to load 6,000 U.S. gallons (22712.47 liters) of #2 oil to
the ship, which is 200 U.S. gallons (757.08 liters) per minute (6,000 gallons/30 minutes =
200 gallons/minute).
• 14:25 – Finished bunkering #6 oil to the ship
The #6 was loaded at a 157 Fahrenheit (72 Centigrade) because of the #6 oil’s high
viscosity so it has to be heated in order to flow through the hose. The outside temperature
6 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
was about 23.9 F˚. Calumet supplied 55,000 U.S. gallons (20,8197.65 liters) of the #6 oil
to the ship, and Mr. Graham mentioned that the loading rate was 1,200 U.S. gallons
(4,542.49 liters) per minute.
Shut down the #6 fuel. The remaining #6 oil in the pipeline was reversed to the Calumet
tank. The pipe has a breathing valve in order to bring air into the pipes to avoid collapse.
Mr. Graham gave the #6 fuel sample with ship paper work and pumping ticket which
issued from pumping metering station to the ship's chief engineer.
• Disconnected hoses from ships
Shut down every system in the facility and check for leaks.
• Authorized the ship to leave
• 15:00 – Facility tour and discussion
• Sulfur Testing
• 15:27 – Returned to UWS
M/V Paul R. Tregurtha Chief Engineer: Mr. Rick Laksonen
Mr. Laksonen said they used to go to the fuel terminal that had the lowest fuel price before the
ECA. However, since ECA was activated on August 1, 2012, the ship’s main concern has shifted to sulfur
content. Their biggest concern now is who has the lowest sulfur content fuel. To meet the ECA, Mr.
Laksonen said he thought that the ship may use natural gas instead of installing scrubbers. If the ship
stayed with IFO and installed scrubbers it will take long time to pay back on the scrubbers. Also, using
the scrubbers brings up the issue of disposal of hazardous waste material. The scrubber is an exhaust gas
purification system (Blikom 100). The advantage of installing scrubbers is that the initial capital costs are
less than changing ship’s engines’ to LNG and installing LNG tanks. Also, with scrubbers, ships are able
to use Heavy Fuel Oil (HFO) in the future ( Bilkom 59). Mr. Laksonen pointed out the disadvantage of
scrubber technology: the waste material generated from the scrubbers is an environmental threat.
Moreover, the TEN-T report, “North European LNG Infrastructure Project” mentions that the capital
investments in the scrubber and infrastructure for scrubber waste disposing in ports are also disadvantages
of implementing the scrubber technology (Bilkom 59).
Tour of Calumet Fuel Terminal Calumet Bunkering Hoses
Calumet has three different dimensions of hoses; six inches, four inches, and three inches. They
used two different dimension hoses for the M/V Paul R. Tregurtha bunkering operation. One is the six
inch hose for Number 6 Oil (#6), also called the Intermediate Fuel Oil (IFO 280), and the other one is for
7 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
diesel hose. Each hose has a bonding cable inside of them, which prevent sparks caused by static
electricity. The bonding cable equalizes the electric charges before they develop sufficient amount of
electric charge to produce static sparks (Aviation Fuel Handling Handbook 16). It is very important to
control electrostatic charges in order to reduce the risk of fire or explosion caused by the sparks.
The Pumps
Calumet has four different pumps. Three of them are located inside their facility: the pumps for
pumping the heavy fuel, diesel fuel, and pumps for blending the diesel fuel into heavy fuel. The fourth
pump is for pumping fuel for the ships’ bow thruster. This pump is located at the far end of the facility.
Photo 1 shows the building of the fourth pump. The bow thruster is a device which is built into the bow
of a ship to assist in maneuvering when docking or turning in a small harbor (Alderton 29). The purpose
of the bow thruster is to provide lateral movement of the ship which is difficult and/or cannot be achieved
only by turning the ships’ screw and helm. Vessels that do not have a bow thruster require tugboat
assistance when they dock or when turning. Using a tugboat is costly and requires time to arrange. Having
a bow thruster reduces these times and costs. (Need citation). Depending on the bow thruster, they require
diesel or electricity for their engine. The fourth pump at Calumet is used to pump the fuel to the bow
thruster engine without the need to shift the ship.
Photo 1: Building for the Bow Thruster Pump
Source: Dr. Stewart, Richard. “P1210077”. 2012. JPEG image
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Calumet’s Current Fuel Supply Calumet obtains its fuel from the Calumet Refinery located in Superior, Wisconsin. The refinery
obtains its crude oil from Canadian wells that arrives at the refinery by pipelines. Calumet terminal does
not have a pipeline to transport their fuel at their terminal. The refined products are shipped to the
Calumet fuel terminal by truck. The Jeff Foster trucking company delivers most of the fuel to the fueling
terminal from the refinery. A diesel delivery truck and a heavy fuel delivery truck can unload their fuel at
the same time since Calumet expanded their truck terminal two years ago.
One of the advantages to Calumet is having a refinery closer to fueling terminal. Calumet refinery
is located in Superior, 2407 Stinson Avenue. According to the Google Map, the approximate distance
from the Calumet fueling terminal to the Superior refinery is 7.9 miles (See Map 1). One of the more
expensive transportation modes is motor carrier. Having a refinery close to the fueling terminal enables
Calumet to keep transportation cost low.
Map 1: Refinery location to fuel terminal
Source: Google Map
Low Sulfur Content Fuel
Sulfur dioxide (SO2) is a toxic gas, a member of sulfur oxide (SO), and is produced from burning
fuels containing sulfur, such as coal or oil (EPA 3-3). Also, when the fuel burns at a high temperature, it
generates nitrogen dioxide (NOx). These SO2 and NOx are the major precursors of acid rain (EPA 3-3).
Sulfur dioxide is also a major substance of fine particulate soot and causes negative health effects.
9 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
The sulfur content of fuel differs by the crude oil and the refining process. Calumet tests for
viscosity, gravity, and sulfur contamination at the terminal. Calumet terminal is not responsible for
refining the lower sulfur content fuel, but the refinery has to meet the requirements. The refinery certifies
the fuel before leaves the plant.
Density
Density is a measurement used to calculate the quantity of fuel delivered. Three important
reasons for the density or specific gravity of fuel is listed below (Ewart 4):
1. Operation of centrifuges that clean the fuel of particulate matter (Ewart 4).
2. Density enables calculations to be made about the volume of space required to store a given
weight of oil or conversely to discover the weight oil resulting from the sounding of a tank
(Ewart 4).
3. Density is measured in expressing quantities of oil purchased or use in terms that can be readily
understood (Ewart 4).
Also, density is an indication of the ignition quality of the fuel within a certain product class,
particularly for the low-viscosity IFOs (Vermeire 10).
Viscosity
Viscosity is a measurement of the liquid’s resistance to flow. Viscosity is affected by
temperature, and sales contracts usually specify that viscosity shall be calculated at 50˚ Celsius (Buckley
191).
In the conversation with the research team, Mr. Graham mentioned the heaviest fuel that the ships have
recently been taking is Bunker C (#6 oil), the ratio is 380-ish by steamboat, and it is stored in the tank
401.
Flash Point
Flash point is the temperature at which the vapors of a fuel ignite when exposed to a flame (Ewart
7). The minimum flash point temperature of shipboard residual fuels has been set 60˚C (140˚F) by the
United States Coast Guard.
The Storage Tanks and Capacities
Calumet has four tanks at their terminal. Photo 2 is the photo from Google Earth showing each
storage tank location, empty spaces, and truck loading dock. Photo 3 is the storage tank, taken by Dr.
Stewart. The tank number 3-1 is for the #2 oil with a capacity of 3,000 barrels ( 42 gallons per barrel, 405
10 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
tons) tank. They usually store 116,000 U.S. gallons (439,107.77 liters). The tank number 3-2 is for IFO
320 and has the same capacity as 3-1 tank. Next to tank 3-2, there is a small tank to store the Petroleum
contaminated water (PCW). The other two tanks are number 401 and 402. Both of these store 4,000
barrels (540 tons) of Number 6 oil, which is also called Bunker C oil.
With the exception for the diesel PWC tanks, each tank has three lines. The suction line used to
pump to the ship, the fill line used for filling the fuel into the tanks from the trucks, and the return line.
The return line makes the fuel loop around the building which allows for uniform temperature inside of
tanks in order to be able to load the fuel aboard the vessel.
Photo2: Calumet Superior, LLC., Duluth Marine Terminal Picture
Source: Google Earth
• 3-1: Number 2 Oil • 3-2: IFO 320 • PCW: Petroleum Contaminated
Water • 401: Blended IFO 320 • 402: Blended IFO 320
11 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Photo 3: Calumet Superior, LLC., Duluth Marine Terminal Storage Tanks
Source: Dr. Stewart, Richard. “P1210078”. 2012. JPEG image Possibility for LNG Storage Tanks
In the tank storage area, there are four empty spaces to build additional tanks. Calumet could
build new storage tanks for LNG at their terminal using these empty areas. In the conversation with the
research team, Mr. Graham indicated that the empty space between 3-1 and 401 are too close to build a
new tank; however, the back three empty spaces are available.
It is easier for ships to fuel at Calumet than go to a newly built facility because Calumet has received
approval by the U.S. Coast Guard (USCG) for bunkering operation. The main issue LNG storage tanks
are the USCG has not issued the regulations regarding LNG with building. After the regulation is
revealed, Calumet may not build new tanks using their empty space that was mentioned above. However,
Mr. Graham indicated in discussion with the research team that Calumet leases their land through Duluth
Seaway Port Authority. If Calumet needs more space to build new storage tanks for LNG and comply
with the regulation, they could lease additional space from the Port Authority. Photo 4 shows additional
possible empty spaces to build new facilities.
12 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Photo 4: Additional Potential Storage Tank Location
Source: Google Earth
The Competitor In the discussion with the research team, Mr. Graham mentioned that Calumet Superior, the LLC
Marine terminal does not have competitors at the upper lake. At Two Harbors, Minnesota, there is a fuel
terminal, but they are fueling Canadian flag ships. This terminal purchases fuel from the Calumet refinery
because of the Calumet is the only refinery in the Wisconsin.
Discussion of Fuel Consumption
Mr. Graham calculated the data below for the research team:
The first year the Calumet opened was in November of the 1998-1999 season. As of December
18, 2012, when we visited Calumet terminal, Mr. Graham did not have the data for the 2011-2012 season
as the season was not yet complete. During the winter time when the ships stop operation, Calumet
Terminal does maintenance on their facility.
13 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
The total sold fuel gallon in thirteen seasons is about 245 million U.S. gallons, and the average
per year is 18.8 million U.S. gallons per year. Calumet sold approximately 40% #2 oil over the last three
seasons combined. They also sold 60% #6 oil over the last three seasons combined not including the
2011-2012 season.
Three seasons’ detailed information is below:
2006 – 2007 Season
• Number 2 Oil: 10,270,881 U.S. gallons, which is 39.5% of the total fuel that Calumet sold
• Number 6 Oil: 15, 605, 330 U.S. gallons, which is 60.5% of the total fuel that Calumet sold
• Total: 25,876,211 U.S. gallons
2007 – 2008 Season
• Number 2 Oil: 7.686,173 U.S. gallons, which is 32% of the total fuel that Calumet sold
• Number 6 Oil: 16,304,659 U.S. gallons, which is 68% of the total fuel that Calumet sold
• Total: 23,990,832 U.S. gallons
2010 – 2011 Season
• Number 2 Oil: 8,817,750 U.S. gallons, which is 38.5% of the total fuel that Calumet sold
• Number 6 Oil: 14,086,623 U.S. gallons, which is 61.5% of the total fuel that Calumet sold
• Total: 22,904,373 U.S. gallons
Conversion to LNG
According to the U.S. Department of Energy, one gallon of #2 oil (Diesel) has 113% of the
energy of one gallon of gasoline. Whereas, one gallon of LNG has 64% of the energy of one gallon of
gasoline. LNG has less energy than diesel oil so that the ships burn LNG faster than diesel. This means
when ships use LNG as a fuel, they have to fuel greater amounts of LNG than they fuel with currently.
To calculate how much LNG will be needed to replace the current fuel with LNG, we first need
to convert each IFO’s into British Thermal Units (BTU). BTU is the amount of the heat energy requires to
raise the temperature of one pound (lbs) of water by one degree Fahrenheit (F˚). By using BTU we are
able to compare different fuels into a common unit of measurement based on the energy content of each
fuel.
As stated in the previous section, over a thirteen year period Calumet sells 7,520,000 U.S. gallons
per average year for #2 oil (40% of average selling of 18.8 million per year), and 11,280,000 U.S gallons
of #6 oil per average year ( 60% of average selling of 188 million per year).
According to the U.S. Department of Energy, #2 oil energy content (in LHV, lower heating value,
which is close to the actual energy yield) is 128, 450 BTU per U.S. gallon, and LNG has 74,720 BTU per
gallon. For #6 oil, Bartok mentions in his “Approximate Heating Value of Common Fuels”, it has
14 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
153,200 BTU per U.S. gallon. Therefore, the 7,520,000 U. S. gallons of #2 oil are equivalent to
approximately 955 Billion BTU. Also, 11,280,000 U.S. gallons of #6 oil have approximately 1,728
Trillion BTU. Therefore, if vessels use LNG as a fuel, Calumet will need to supply approximately 30.7
million gallons of LNG per average year (1 gallon of LNG = 87,600 BTU in LHV).
Conclusion
In this report, we discussed the potential of shifting suitable Great Lakes carriers to using Natural
Gas, specifically Liquified Natural Gas (LNG) as a fuel to meet the requirement of the North American
Emission Control Area.
Visiting Calumet Superior, LLC., Duluth Marine Terminal (Calumet), the team observed that
there are potential spaces to build LNG storage tanks in their existing fuel storage tank area. Moreover,
Calumet could negotiate with their landowner, Duluth Seaway Port Authority, to expand their site if
needed.
The advantages of building LNG storage tanks for fuel bunkering are (1) Calumet has already
been approved by the USCG for bunkering operation, (2) Calumet is the largest U.S.fuel supplier in the
head of the Lakes area, and (3) Calumet has empty areas to build new LNG storage tanks.
In addition, the development of LNG terminals in the Duluth / Superior region shows that there
are synergies between the build-up of an LNG terminal infrastructure and industrial use. Map 2 shows
Twin Port LNG terminal marketing region. There are multiple potential markets for LNG. Within 250
miles, this region has a market of 4.3 million people. The transportation hub includes four class one
railroads, largest dry bulk port in U.S., trucking, and mining, transit and agriculture as well as shipping.
Map 2: Twin Ports LNG Terminal Marketing Region
250-Mile Radius of Duluth and Chicago
4.3 Million People
Mining Marine Transportation
Transit
Rail
Trucking Pipeline
15 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Work Cited
“Alternative Fuel Data Center – Fuel Properties Comparison” U.S. Department of Energy. 15 Nov 2012. PDF. 27 Jan 2013.
Aviation Fuel Handling Handbook. Office of Aircraft Services. Idaho. U.S. Department Of The Interior. 3
Jan 1994. Print. Bartok, John W. Jr. “Approximate Heating Value of Common Fuel”. University of Connecticut. Dec
2004. PDF. 26 Jan 2013. Blikom, Lars Petter. "Status and Way Forward for LNG as a Maritime Fuel." Australian Journal of
Maritime and Ocean Affairs 4.3 (2012): 99-102. ABI/INFORM Complete. Web. 5 Jan. 2013. Buckley J. James. The Business of Shipping. 8th ed. Need city of publication Schiffer Publisher.2008.
Print Co-financed by the European Union. “North European LNG Infrastructure Project: A feasibility study for
an LNG filling station infrastructure and test of recommendations”. Copenhagen: The Danish Maritime Authority. March 2012. 8 Jan 2013. PDF.
DNV Managing Risk. DNV. 2012. 3 Jan 2013.
http://www.dnv.com/industry/maritime/servicessolutions/fueltesting/fuelqualitytesting/iso8217fuelstandard.asp
Ewart W. D. Bunkers: A Guide for the Ship Operator. United Kingdom: Fairplay, 1982. Print. Harbor House Publishers. Greenwood’s Guide to Great Lakes Shipping 2009. Michigan: Harbor House,
2009. Print. “North American emission control area comes into effect on 1 August 2012”.International Maritime
Organization. Briefing 28. 31 July 2012. Web. 9 Nov 2012. Stewart Richard D. “Natural Gas: A Transportation Fuel for the Future?” File last modified: 26 Oct 2012.
Microsoft PowerPoint file. The Interlake Steamship Company: On the Great Lakes since 1913. The Interlake Steamship Company.
Accessed December 29, 2012. < http://www.interlake-steamship.com/> The St. Lawrence Seaway Management Corporation.“The Welland Canal Section Of The St. Lawrence
Seaway”. The St. Lawrence Seaway Management Corporation. March 2003:7,11. PDF File. United States Environmental Protection Agency. “Proposal to Designate an Emission Control Area for
Nitrogen Oxides, Sulfur Oxides and Particulate Matter: Technical Support Document”. EPA. April 2009. PDF.
Vermeire, B. Monique. “Everything You Need to Know About Marine Fuels”. Chevron Global Marine
Product. July 2007. PDF.
16 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Appendix I Survey Instrument
17 Great Lakes LNG- Vessel Fuel Terminal – Hiroko Tada CMA 2013
Appendix II Questions for Calumet
• Who is your competitor in this region? • Who is your competitor in the upper lake and lower lake? • Who are your suppliers for each different type of fuel? • How do you bring the different types of fuels to your terminal?
Low sulfur content fuel
• Can you supply low sulfur content (EPA- ECA ) fuel to ships? o Sulfur limit in Fuel (% m/m)
Effective from 1 January 2012: 1.0 % 1 January 2015: 0.1 %
• Who are your suppliers for lower sulfur content fuel? • How much low sulfur content fuel will you be able to supply? • Do you have competitors to supply lower content sulfur fuel in the upper lake/ lower lake?
Because of the Emission Control Area regulation, the shipowners are considering shifting their fuel to LNG,
• Have you ever thought about supplying LNG from your terminal?
If yes,
• Where will you get the LNG for your terminal? o Peak Shaving
• How would LNG be brought to your terminal? • Do you have room for LNG Storage tanks
o Conversion numbers: • What modifications would be needed to your terminal to fuel ships with LNG
Who are your customers for LNG?